The FTSE 100 has continued its unstoppable, as the leading UK index decouples from US and global stocks and break above the psychological 7,500 resistance level with relative ease.
Traders that have bought the dip in March have been rewarding handsomely, and this theme looks very strong going into April based on the formation of the weekly and monthly candles.
In terms of future upside targets, buyers are likely to target the current yearly high, around the 7,700 level, which is the yearly high so fat, and then the 8,000-resistance level.
Somewhat worryingly for bears, is sentiment. Traders are starting to turn bearish towards the UK100 at exactly the time it is looking its most bullish, and it fails to correct lower.
Sentiment towards the UK100 is very clear right now. According to the ActivTrader platform over 63 percent of traders are bearish towards the UK100. This is very bullish in contrary sentiment terms this week.
Typically, the retail crowd is on the wrong side of the trade more often than not, so the UK100 could continue to rise this week and month. Investors are totally ignoring the conflict in the Ukraine, but retail remain cautious.
UK100 Short-Term Technical Analysis
The four-hour time frame shows that the UK100 index has advanced back above its 200-period MA on the four-hour time frame, around the 7,400 level. The metric is very good to define the short-term trend, which is currently bullish.
Negative MACD price divergence extends back towards the 7,400 level, and it is likely that it will be a buying opportunity and a potential bounce spot back towards the 7,550-resistance level.
UK100 Medium-Term Technical Analysis
The daily time frame shows that the FTSE100 has once again bounced from the bottom a rising price channel between the 7,000 and 8,500 price level.
Additionally, a large, inverted head and shoulders pattern looks to have formed. The pattern will be confirmed if we see the FTSE100 moving back towards the best levels of the year so far. This looks increasingly likely.